Month: October 2020

A firm only has the resources to introduce one new product to the market. The results of its market research survey are shown below.

• 5% of women and 18% of men said they would consider buying the product.
• Of these, 30% favoured the basic model and 70% favoured the advanced model.

Which one of the following does the market research suggest it would be best for the firm to do

Select ONE answer:

1. Produce the advanced model and target men
2. Produce the advanced model and target women
3. Produce the basic model and target men
4. Produce the basic model and target women

Show the workings to arrive at your answer, and explain and justify your reasons:

Which one of the following is a benefit to a flower shop of employing extra temporary sales staff 
on Valentine’s Day?

Select ONE answer:

1. More customers can be served
2. Roses can be sold for cheaper prices
3. The flowers will be fresher
4. Workers can be paid less than the minimum wage

Show the workings to arrive at your answer, and explain and justify your reasons:

Which one of the following is NOT a benefit of being a sole trader?

Select ONE answer:

1. Keep all profits
2. Own boss
3. Pursue personal goals
4. Shared responsibility

Show the workings to arrive at your answer, and explain and justify your reasons:

A small business that sells baby clothes has done some market research using a range of 
information sources.

Which of the following would have been obtained from internal data?

Select ONE answer:

1. Articles in parenting magazines
2. Competitor websites
3. Government statistics on birth rates
4. Sales figures showing the shop’s best-selling products

Show the workings to arrive at your answer, and explain and justify your reasons: